Excerpts from official documents published in local media confirm that the ban on the supply of advanced lithographic equipment from the Netherlands to China in 2020 was imposed at the urging of that country’s Ministry of Defense, which in turn acted at the urging of the US authorities. In the near future, the Dutch government should further restrict the shipment of ASML devices to China.
As explained Reuters Citing its own sources, exports of ASML devices to China are set to be further restricted for the foreseeable future, and related national security negotiations are currently underway between the Netherlands and the United States. The news for the stock market will overshadow the impact of ASML’s latest quarterly financial report, which is due next week. Now the company gets up to 15% of its total sales Chinese-bound, and the local market continues to grow rapidly.
We recall that US authorities imposed their own additional export restrictions on China in early October, and since then they have persuaded the Netherlands and Japan to join them to some extent. Officials in the Netherlands try to take into account the economic interests of national equipment suppliers, the largest of which is ASML. Trade Minister Liesje Schreinemacher said yesterday from the WEF podium in Davos: “I know there is serious international pressure, but I will fight for the principles of free trade and against protectionism.”.
The country’s authorities are now trying to develop rules that do not restrict companies from the Netherlands more than American ones. Second, these restrictions must be synchronized with Japan. Third, you need to ensure that the new restrictions don’t shake up the world market for semiconductor components, which is already not in the best of shape.
Analysts expect ASML to post net income of €1.68 billion and record sales of €6.37 billion in the most recent quarter. In November, the company’s management raised its annual revenue forecast by 25%, expecting it to hit at least €30 billion annually by 2030. US sanctions in October alone could cut ASML’s order book by 5%, but if the Netherlands tightens its own restrictions, the losses could be bigger.
Until 2014, the supply of equipment for DUV lithography to China was limited, then the ban was lifted, and since then ASML has been able to win more than 8 billion euros in this direction. There is a possibility that such restrictions will return.
The revelations became the publication Financieele Dagblad knownthat in 2020 the Dutch authorities followed the recommendation of the local Ministry of Defense not to ship EUV lithography equipment to China. According to representatives of the Dutch Ministry of Defense, if the supply of such equipment to China had not been stopped, then the chances of one of the NATO countries facing the need to defend against advanced weapons produced by a more potential would have increased several times Opponent. The document also emphasized that “The most important strategic partner in the security field (USA) has made an urgent request for suitable content to the Dutch authorities”to prevent the export of EUV lithography to China.